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Severance Agreement Guide

WHAT IS A NON-DISPARAGEMENT CLAUSE IN A SEVERANCE AGREEMENT?

By SeveranceClarity  ·  7 min read  ·  Educational guide — not legal advice

After a layoff, you might want to vent — to friends, on LinkedIn, or anywhere else. But if your severance agreement contains a non-disparagement clause, what you say about your former employer could have legal consequences.

This clause is one of the most commonly misunderstood parts of a severance agreement. Here's exactly what it means and what it covers.

What Is a Non-Disparagement Clause?

A non-disparagement clause is a contractual restriction that prevents you from making negative statements about your former employer — its leadership, products, services, or employees — after your departure. In exchange for severance pay, you agree not to say things that could harm the company's reputation.

In plain English: you agree to keep negative opinions to yourself.

What Does It Actually Cover?

The scope of a non-disparagement clause varies by agreement, but most cover:

Broad clauses may also cover statements about the company's officers, directors, employees, products, or services — not just the company itself.

A Glassdoor review could violate your non-disparagement clause. Even anonymous reviews may be subject to the restriction if your agreement covers online statements. This is worth understanding before you post anything.

Is It Mutual?

Some non-disparagement clauses are one-sided — only you are restricted. Others are mutual, meaning the company also agrees not to make negative statements about you. Mutuality is worth negotiating for if your agreement doesn't already include it.

A mutual clause protects you from your former employer telling future employers or colleagues negative things about you.

What Are the Exceptions?

Even the broadest non-disparagement clauses have limits. Things typically not covered include:

In 2023, the National Labor Relations Board issued a ruling clarifying that overly broad non-disparagement clauses can violate the NLRA if they prevent employees from discussing wages, hours, or working conditions. This is an evolving area — consult an employment attorney if you have concerns.

How Long Does It Last?

Most non-disparagement clauses are permanent — they don't have an expiration date. Once you sign, the restriction applies indefinitely unless the agreement specifies otherwise. Some agreements include a defined term (e.g., two years), but perpetual restrictions are common.

What Happens If You Violate It?

Violating a non-disparagement clause can result in:

In practice, enforcement is relatively rare — lawsuits are expensive and outcomes are uncertain. But the risk is real, and high-profile violations (a damaging viral post, a media interview) are more likely to trigger a response.

Can You Negotiate It?

Yes. Common negotiation approaches include:

WHAT DOES YOUR CLAUSE SAY?

We'll read your entire severance agreement and explain the non-disparagement clause in plain English — exactly what you can and can't say, and for how long.

Get My Plain-English Report — Starting at $147

Key Takeaways

Disclaimer: This article is an educational resource produced by SeveranceClarity. It is not legal advice and does not establish an attorney-client relationship. SeveranceClarity is not a law firm. Always consult a licensed employment attorney before making legal decisions about your severance agreement.